Saturday, June 15, 2024

Ramp Announces $300 Million in New Funding to Accelerate Expansion in New Categories

Ramp, the finance automation platform designed to help businesses spend less, today announced a $300 million Series D on the back of strong revenue growth, rapidly increasing market share among small and mid-sized businesses, and successful expansion into the enterprise segment over the past year. The company will use this capital to further fuel its industry-leading pace of product development and accelerate its expansion into adjacent categories.

In an uncertain macroeconomic environment, companies of all sizes and across all industries are more focused than ever on their bottom line. As businesses look for modern finance tools that help them operate more efficiently and profitably, Ramp has seen increasing demand for its spend management platform along with its other products, such as accounts payable automation and procurement. Large multinational and public companies such as Anduril, Poshmark, and Virgin Voyages have recently selected Ramp to modernize their spend management.

“We look to partner with generational companies, and Ramp has proven itself as a challenger that is transforming its industry to the benefit of businesses everywhere,” said Ken Chenault, Chairman and Managing Director of General Catalyst, and Former Chairman and CEO of American Express. “We believe Ramp is emerging as an enduring leader in the new category of finance automation. It is setting a new standard for what businesses should expect – transparency, value, efficiency, and tangible time and money savings.”

In the past three months, Ramp has:

  • Entered the procurement software category with Ramp Plus, a new paid edition of its platform.
  • Launched Ramp Intelligence, which uses natural language to generate insights for finance teams and proactively surface savings opportunities.
  • Acquired Cohere.io, an AI-powered customer support platform, and announced the involvement of Microsoft CEO Satya Nadella as an investor and advisor.

“In the last year alone, we’ve expanded Ramp’s offerings to become the only platform in the market that’s designed to save businesses time and money,” said Eric Glyman, CEO, Ramp. “Our mission is to help our customers build healthier businesses and this funding will help us execute against our goal to continue expanding the Ramp platform to better serve customers. At Ramp, we succeed when our customers can run their business more efficiently.”

Thrive Capital, Sands Capital, General Catalyst, Founders Fund, and other existing investors all participated in the financing. This is Thrive Capital’s fourth, Sands Capital’s first, General Catalyst’s second, and Founders Fund’s eighth investment in Ramp, respectively.

“Ramp has a powerful combination of a tenacious team that is fast-executing, and a massive market with strong structural tailwinds,” said Kareem Zaki, Partner at Thrive Capital. “Ramp is giving CFOs and business leaders real-time data at the transaction level that is rapidly changing the way they manage their business. As a result, you’re seeing Ramp get pulled up-market by larger companies and expanding the product to address the changing needs of today’s CFO.”

Ramp has saved customers more than $600 million and over 8.5 million hours of employee time

Bringing together spend management, accounts payable, vendor management and price intelligence, and procurement, Ramp is the most comprehensive finance automation platform. It’s also the only company in the category that measures its success by how much time and money its software has helped customers save.

Barron Martin, Managing Partner at Sands Capital, added, “Ramp has been on our radar for a long time because of its high customer affinity and rapidly expanding platform. Customers continue to engage more deeply with the product and many of them are rearchitecting their financial systems around Ramp. We look for world-class teams attacking large markets and we’ve been impressed by the company’s combination of customer centricity, product velocity and exception execution. We believe this is a recipe for long-term success, and are thrilled to partner.”

To support its ambitious growth plans and growing customer base, Ramp expects to hire significantly in the coming months across all functions. The company will also remain opportunistic when pursuing growth-driving partnerships or acquisitions to solve more of its customers’ needs. Next month, Ramp’s paid edition of the platform, Ramp Plus, will be available to all customers.

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